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refer to second photo , zoom in A firm is contemplating shortening its credit. From 40 to 30 days and believes that as a result
refer to second photo , zoom in
A firm is contemplating shortening its credit. From 40 to 30 days and believes that as a result of this change its average collection. Will decline from 46 to 35 days. Bad debt expenses are expected to decrease from 1.6% to 0.9% of sales. The firm is currently selling 12,200 units but believes that as a result of the proposed change sales will decline to 10,300 units the sale price per unit is $54, And the variable cost per unit is $47 the firm has a required return on equal risk investments of 11.3% evaluate this decision and make a recommendation for the firm
A firm is contemplating shortening its credit. From 40 to 30 days and believes that as a result of this change its average collection. Will decline from 46 to 35 days. Bad debt expenses are expected to decrease from 1.6% to 0.9% of sales. The firm is currently selling 12,200 units but believes that as a result of the proposed change sales will decline to 10,300 units the sale price per unit is $54, And the variable cost per unit is $47 the firm has a required return on equal risk investments of 11.3% evaluate this decision and make a recommendation for the firm
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